(Yicai) May 23 -- China Vanke, a distressed builder, obtained CNY20 billion (USD2.8 billion) in a syndicated loan from financial institutions such as China Merchants Bank, marking the largest single loan for a Chinese real estate company since 2020.

Vanke already received half of the funds, Yicai learned today. It used shares of warehousing unit Wanwei Logistics as collateral.

The joint loan from several financiers will help the company improve its liquidity, the Shenzhen-based firm said, adding that Vanke has the confidence and ability to proactively, comprehensively, and systematically complete the transformation of its financing model while properly handling its maturing debt.

The conglomerate has been improving its capital chain lately amid governments' supportive policies to stop the spiral of falling sales of new homes and cash-strapped builders.

Vanke said on May 13 that it had applied for loans totaling CNY7.3 billion (USD1 billion) from Bank of China, Agricultural Bank of China, and Bank of Beijing. On May 20, it got a CNY1.2 billion (USD165.6 million) loan from BoC. A few days before that, it issued CNY1.4 billion of commercial mortgage-backed securities on the Shenzhen Stock Exchange to reduce its financing costs.

Vanke’s liabilities totaled CNY1.1 trillion (USD151.8 billion) as of Dec. 31, according to its annual report. Interest-bearing liabilities due within one year amounted to CNY62.4 billion, accounting for almost 20 percent of the total.

Chairman Yu Liang said during a shareholder meeting on April 30 that the firm would withdraw from non-core businesses to focus on its three key areas, namely developing new homes and rental housing, as well as property management. Vanke's other businesses at home and abroad include hospitality, as well as logistics and warehousing, according to its website.

Shares of Vanke [SHE: 000002] closed 1.7 percent higher at CNY9.56 (USD1.30) in Shenzhen today, showing a more than 46 percent surge in one month.

Editor: Emmi Laine